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#inflation #InterestRates #MMT #UBI
This article asks the right questions but skirts around the answers.
https://www.cbc.ca/news/canada/inflation-interest-rate-hikes-1.6678050
Workers pay two ways: through direct loss of employment, and the decreased ability to individually or collectively bargain for higher wages to address the rise in prices.
When central banks 'wage war on Inflation" the only casualties are workers and their families.
tl;dr It don't, in fact by raising unemployment it hurts all of us.
@corlin Yeah, this stuff drives me freaking crazy and I can't help but rant about it.
#MonetaryPolicy that uses higher interest rates to decrease inflation puts all of the costs onto wage earners.
Higher interest rates slow the economy by decreasing business investment and increasing the cost of inventory. The result is lower levels of employment: more people out of work.
Inflation pressure is eased by taking Wage Income out of the economy.